Published on Thursday, January 20, 2011,
updated Wednesday, March 14, 2012

Some people think I am obsessed by the shale gas revolution and
that I might be exaggerating its significance.

Well, if anything I'm underplaying it.

The International Energy Agency says so. Here's what it says (from UPI):

"Production of 'unconventional' gas in the U.S. has rocketed in
the past few years, going beyond even the most optimistic
forecasts," said Anne-Sophie Corbeau, a gas analyst at the IEA. "It
is no wonder that its success has sparked such international
interest."

Shale gas production in the United States is
booming and the IEA estimates that unconventional gas makes up
around 12 percent of the global supply.

Global supplies of natural gas could last for
another 130 years at current consumption rates. That time frame
could double with unconventional gas, the IEA said.

"(D)espite the many uncertainties associated
with production, countries are still prepared to take risks and
invest time and money in exploration and production, because of the
potential long-term benefits," Corbeau said.

[Dr Fatih Birol, chief economist at the
International Energy Agency] also warned that efforts to tackle
climate change through renewable energy were under threat from the
world revolution in unconventional gas sources. He said the shale
gas boom in the US has already led to a gas rush which had
contributed to a 50% drop in investment in renewable
energy.

And the US boom, he said, had a
knock-on global effect. The fact that the US has suddenly found
that it is independent in gas supplies means it doesn't have to
import gas.

That means the nations gearing up to
sell gas to the US have to find other markets, which is forcing
down prices.

"There's suddenly much more gas
available in the world than previously thought," he told BBC
News.

"It's cheaper than it was and the
supply is more assured. And it's only half as polluting as coal.
There will be strong debates between energy and climate and finance
ministries round the world about whether investment should continue
to support renewables when the situation on gas has so radically
changed."